Lukas Galdikas

Single price zone vs zonal split - German case

Discussion created by Lukas Galdikas Partner on 01-Feb-2018
Latest reply on 02-Feb-2018 by Madis Leinakse

In the S&P Global article released 24 January, 2018 an issue of single price zone in Germany is identified. Re-dispatching is identified as inefficient and potentially very costly.

 

Single price zone is found only as politically preferred option, while technically market zone split could be a solution, however contravene to political desires. Italy's example is found as potential political compromise - 'technical split of market zone', which is split of bidding zones for resource providers, while consumers would still be exposed to single price.

 

Where should we be heading towards (not only in Germany) in your opinion?

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